Escaping the patent trolls: impact of non-practicing entity litigation on firm innovation strategies

Kenneth G. Huang, Mei-Xuan Li, Carl Hsin-Han Shen, Yanzhi (Andrew) Wang

Research output: Contribution to journalMeeting abstractpeer-review

Abstract

Non-practicing entities (NPEs) are firms that build patent portfolios but do not implement the patented technologies in any products, processes, or services (known as patent trolls). NPEs initiate lawsuits primarily not to stop patent infringement, but for the potential monetary profits. We examine how firms shift their innovation strategies in response to heightened NPE litigation risks. We theorize and find that firms targeted by NPEs will subsequently draw more upon their in-house technologies to reduce the legal ground for such lawsuits, whereas firms in related technology areas will shift their innovation activities away from areas of high NPE litigation risks.

Original languageEnglish
JournalAcademy of Management Annual Meeting Proceedings
Volume2022
DOIs
Publication statusPublished - 6 Jul 2022
Event82nd Annual Meeting of the Academy of Management 2022: A Hybrid Experience, AOM 2022 - Seattle, United States
Duration: 5 Aug 20229 Aug 2022

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